New Mobile Phone Offers Free Internet Calls

EBay division Skype and mobile phone group 3 have launched a mobile handset that allows Skype users to make free Internet calls to each other while on the move.

The companies said on Monday the new 3 Skypephone could also send free Skype instant messages, and that they hoped to sell "several hundred thousand" units worldwide in the fourth quarter of this year.

The phone is being launched in nine markets including Britain, Australia and Italy, with a roll-out into other countries under consideration.

"Skype is now truly mobile. This new handset lets you make free mobile Skype calls when you are on the move to other Skype users all over the world," Skype acting CEO Michael van Swaaij said in a statement.